Signet Jewelers shares leap 17% following Q2 earnings beat

HAMILTON, Bermuda - Signet Jewelers Limited (NYSE:SIG ) reported second quarter fiscal 2025 results that beat earnings expectations but fell short on revenue. SIG shares were trading up 17.88% Thursday morning.



The world's largest retailer of diamond jewelry posted adjusted earnings per share of $1.25, topping the analyst consensus of $1.18. However, revenue came in at $1.5 billion, slightly below estimates of $1.51 billion and down 7.6% YoY.



Same store sales declined 3.4% compared to the same quarter last year. The company said its strategy of balancing new merchandise, competitive pricing, and sourcing savings drove merchandise margin expansion of 120 basis points.



"I'd like to thank our Signet team for delivering our fifth consecutive quarter of sequential same store sales improvement, up more than 5 points compared to the first quarter of this year and turning positive third quarter to date," said CEO Virginia C. Drosos.



For the third quarter, Signet expects revenue between $1.34-$1.38 billion. The company reiterated its full year fiscal 2025 guidance, projecting revenue of $6.66-$7.02 billion and adjusted EPS of $9.90-$11.52.



While the slight revenue miss pressured shares, management expressed confidence in meeting annual targets, citing growth in new high margin fashion merchandise and services. Signet also increased its cost savings target to $200 million for the year.

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Source: Investing.com